Xbox Launches XP: New Division for Film, TV, and Theme Parks

Xbox has established a new division called "XP" to consolidate its film, television, consumer products, and live experience efforts, Chief Strategy Officer Matthew Ball announced in a blog post on October 8, 2026. The move signals an official pivot toward turning gaming IP into broader lifestyle brands, because apparently, actually playing the games is only the first step of the ecosystem journey.

"Our ambition at Xbox is to be the number one entertainment company in the world," Ball wrote, outlining the corporation's long-term goals. The newly formed division will be led by President Kayleen Walters, who previously oversaw Minecraft's licensing and cinematic expansion at Mojang.

Rather than letting individual studios broker their own Hollywood deals or merchandise lines, XP is designed to centralize these operations. It brings together existing internal teams under a unified strategy to push Xbox properties beyond the living room. It is the corporate equivalent of cleaning out the kitchen junk drawer and organizing it into labeled dividers—specifically, four of them.

The details

• Xbox Pictures: Focuses on film, television, and linear storytelling.
• Xbox Products: Focuses on consumer goods and authentic merchandise.
• Xbox Places: Manages live events, immersive attractions, destinations, and broadcasts.
• Xbox Partnerships: Partners with creators, brands, and sponsors.

What is the strategy?

The formation of XP formalizes four distinct investment areas that have previously operated independently across the Xbox ecosystem. By grouping film, product licensing, live events, and sponsorships together, Microsoft is looking to replicate the cross-media success seen by rivals who have increasingly relied on theatrical releases and theme park deals to pull new players into their gaming platforms. According to Xbox, the creative studios will continue to focus on game development while partnering with XP to extend those worlds.

Who is running the show?

Kayleen Walters will head the division as President, bringing a track record of scaling massive entertainment properties. During her 13-year tenure at Lucasfilm, she assisted in managing Star Wars, and later transitioned to Mojang. Xbox notes that under her leadership, Minecraft grew from 350 million units sold to over 425 million, while also securing global merchandising partnerships and laying the groundwork for A Minecraft Movie, which Xbox reported secured the biggest opening weekend ever for a video game adaptation.

Walters' appointment suggests Xbox is looking for a steady hand to steer what can often be a volatile transition from interactive media to linear entertainment. Whether this consolidation results in a seamless pipeline of TV shows and merchandise remains to be seen, but the corporate blueprint is now officially drawn.